Corporate Tax Planning
Corporate tax planning is an important step for all businesses each and every year
. Plans you put in place each budget year can mean the different in what your physical year end is left with.
The most important reason behind corporate tax planning is to lessen your taxes. The nice thing about talking with a tax man or attorney, is that they can help you find ways to minimize your taxes and bring something of value to yourself in some cases. For instance, if you were to start of a retirement plan, the dollars put in that fund would be pre-tax dollars. This tpe of program can be set up even if you are an independe contractor.
When doing your corporate tax planning don't forget the normal deductions, just as you might take as a family. You can deduct for office expenses, travel, and other things related to your business.
If you are a business owner, then remember to include in your planning the self employment tax you will have to report. When you come up with a tax plan you must take into consideration the expenses against projected growth.
If this is your first company year you can write off start-up cost, but that only works for the first year. However, any equipment you rent or buy in years to come and be used as a deduction, and depreciated over several years, to help with taxes. If you need equipment, buy it, but never buy it just because it will give you a deduction. Plan right and your decisions will turn out right.
Travel expense used to be a huge expense for some businesses, however now that more and more companies are doing their training and meetings on the Internet, this is not the case. If you can save money using equipment you already have to train employees ,and not travel, then save money and train from your office.
There are a couple of accounting methods available for businesses. For companies that have year end inventory, then you will need to use the accrual method. Again when doing your corporate tax planning, get help from your accountant or tax attorney.
Corporate Tax Planning
By: Rhonda Grice
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